|Dear Seed Investor,
Want to know how you have a good stock?
If it’s up when the market is down, odds are it’s going to do even better when the markets turnaround.
That’s why I’m excited to tell you about a recent discovery we’ve made while sifting through the marijuana industry.
There’s a small group of marijuana-related stocks which have side-stepped the entire downturn.
They’re up over the last couple of weeks and, when things turn around, they could take off.
Best of all, thanks to another major revisions to U.S. laws, their future is even brighter.
Here’s the story.
2019: The Year Of 100% Legal CBD
Next year is going to be a breakout year for the CBD sector and CBD stocks are already making their move.
CBD is shorthand for cannabidiol, a compound found in both hemp and marijuana plant.
Hemp and marijuana plants can both be processed to produce CBD extract.
CBD doesn’t get you “high” like the THC found in marijuana though, but it does have a lot of medicinal properties.
The Guardian has called CBD a “Miracle Compound.”
They’re not far off either.
CBD has been used to effectively treat chronic pain, anxiety, epilepsy, and dozens of other conditions which affect, in total, more than 100 million Americans.
As you might expect, the CBD market has explosive growth potential.
Earlier this year the Seed Investor pointed out to you that Matt Karnes of Greenwave Advisors said, “In terms of the CBD market size, I estimate an almost $3 billion market by 2021. Right now there are 15 states that allow CBD only -- this is in addition to the 28 states plus DC that have legalized medical marijuana.”
Those estimates, while enticing, are starting to look a little on the small side though.
Last week Senator Mitch McConnell (R-KY) confirmed hemp would be legalized in the upcoming Farm Bill that passed today.
This is a massive change which should essentially legalize hemp-derived CBD across the U.S. and unleash an epic growth surge in CBD.
If you’re watching the alternative health industry, you’re already starting to see CBD pop up every year.
Now that it’s about to be legal though, you will see CBD go mainstream.
But we realize few users will be willing to buy the oil, find a vape system or directly ingest CBD oil.
The majority want to eh quickest and easiest delivery method.
That’s why we have identified CBD-infused beverages as the biggest growth market in all of CBD.
Simply put, beverages infused with CBD will be a simple, easy-to-take medium for CBD consumption.
This idea is not new though. It swept the market a few months ago.
If you recall, there was a broadly spread rumor Coca Cola (KO) was in talks with Canadian marijuana companies to develop a CBD-infused beverage.
The rumor kicked off a frenzy for CBD-infused beverage stocks too.
The Seed Investor broke down the “contenders” from the “pretenders” in the CBD-infused beverage business at the time.
Since then, the pretenders have faded and the contenders are continuing to rise despite the toughest of market conditions.
And that mix of stocks rising in the toughest of markets signals to us the start of something big.
CBD Beverages: Glaring Bright Spot In Dark Market
Our updated analysis of the CBD-infused beverage stocks revealed how far the CBD-infused beverage leaders are starting to separate themselves.
Just look at the “pretenders” we identified collapsed.
We aren’t even going to mention the names of them here.
Their shares have collapsed (down 37% and down 60%) and are now either too small or have become total jokes.
However, the “contenders”, are quickly becoming stars in an industry poised for staggering growth.
As mentioned above, their shares haven’t just held up well during the marijuana stock downturn, their shares are actually up.
In fact, while the Marijuana Stock Index is down 46%, the two contenders we identified are up 5% and 21%.
The way things are looking, both of the CBD-infused beverage “contenders” are making big moves too.
For example, one of the contenders was New Age Beverages (NBEV).
A few days ago NBEV announced it was going to acquire Morinda Holdings, a Utah-based CBD-infused beverage maker, for $85 million.
It has taken a long time for NBEV to get a CBD-infused product, but now it has a sizeable footprint in the sector.
NBEV isn’t alone though.
The top-performing “contender” we identified is making even bigger strides.
Alkaline Water (NASDAQ|TSXV: WTER), the Seed Investor’s top pick in the CBD-infused beverage race, was an early leader.
The company had a big head start on all the latecomers with an established distribution network, its own production facilities, soaring sales of its core Alkaline88 water product, and management with a proven track record of marijuana industry success.
WTER just started trading on the Nasdaq giving it access to a massive new group of potential investors.
It also just reported record sales, exceeding $3.1 Million in November.
As a result, it’s no surprise WTER shares are up a respectable 21% while the rest of the marijuana sector is collapsing.
Any way you look at it, CBD is set to have a breakout year in 2019 and CBD-infused beverages are the best way to get in on it all.
The Seed Investor
P.S. You can get all the latest news and analysis on the top-performing CBD-infused beverage stock by following this link